OpenAI announced on Monday that it has raised up to $40 billion in a new funding round, with the majority of the investment coming from Japan’s SoftBank.
The latest financing values the artificial intelligence company at $300 billion, nearly doubling its valuation from October 2024.
SoftBank is contributing $30 billion of the funding, with an initial $10 billion investment in April and the remaining $30 billion scheduled for December—contingent on OpenAI transitioning to a for-profit structure by the end of the year. Other participants in the funding round include Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. SoftBank has also indicated that it may syndicate $10 billion of its investment to other co-investors.
The funding will allow OpenAI to expand its AI research, strengthen its computing infrastructure, and develop more advanced tools for its growing user base. The company reports that 500 million people use ChatGPT weekly.
Investor interest in artificial intelligence has surged in recent years, driven by the rapid adoption of generative AI technologies across industries. OpenAI has positioned itself as a leader in the field, competing with tech giants like Google and emerging players such as China’s DeepSeek.
The funding round also aligns with OpenAI’s role in the $500-billion Stargate project, a collaboration with SoftBank and Oracle to build AI-focused data centers in the United States. A significant portion of the new investment is expected to support this initiative.
However, the financing comes with conditions. If OpenAI does not complete its planned restructuring into a for-profit entity by December 31, SoftBank’s total investment could be reduced to $20 billion. The restructuring, which would involve spinning out OpenAI’s original nonprofit entity, requires approval from both Microsoft and the California Attorney General.
“This investment helps us push the frontier and make AI more useful in everyday life,” OpenAI CEO Sam Altman said in a statement.
With this funding, OpenAI joins the ranks of the most valuable private technology companies, alongside SpaceX and TikTok’s parent company ByteDance. The company continues to evolve its business model, recently announcing plans to release an “open-weights” AI model in response to growing competition from open-source AI providers.
With input from CNN, Fortune, CNBC, and the Financial Times.
